Toss Bank launches commission-free foreign exchange services

South Korea’s fintech platform Toss Bank said on Thursday it has launched commission-free foreign exchange services for the first time as a domestic financial services company.

Customers with a Toss Bank foreign currency account will be able to exchange up to $300,000, or about 400 million won, each month into 17 different currencies without having to pay fees, the company said in a news conference.

The exchange services will be offered in real time, 24 hours a day.

The internet-only bank's advance into the foreign exchange service market, particularly without charging fees, will likely threaten traditional lenders under pressure to boost fee income while lowering their reliance on interest margins.

Toss Bank will also enable its debit cardholders to pay for overseas purchases and withdraw cash in foreign currencies using the card. There is no deposit limit on their foreign currency accounts.

Additionally, the company created an automatic currency exchange function for their customers to make real-time payments and withdraw cash from their Korean currency accounts.

If their foreign account balance is not sufficient for an overseas payment, they can draw on their Korean currency account at Toss Bank to make up for the shortfall, also in real time.

The announcement of the FX service launch comes as its parent Viva Republica Inc. is preparing to go public about two years after postponing the listing amid rising interest rates and a dim economic outlook.

Write to Bo-Hyung Kim at kph21c@hankyung.com
 

Yeonhee Kim edited this article.